The U.S. Securities and Exchange Commission has approved Nasdaq’s proposal to launch bitcoin index options, meaning a new class of bitcoin-linked derivatives will be added to regulated U.S. markets. However, these contracts cannot yet be traded and still require further approval from the U.S. Commodity Futures Trading Commission.
Contract pegged to the real-time Bitcoin index
According to the disclosure, this new product line will be based on the CME CF Bitcoin Real Time Index, which continuously updates prices from cryptocurrency exchanges every 200 milliseconds.
The product being launched is not a spot Bitcoin ETF, but a European-style cash-settled option that can only be exercised at expiration. Compared to American-style options that can be exercised early, this structure is typically more aligned with the standard design of index options.
Access the U.S. stock options market
Currently, U.S. investors can access Bitcoin futures options through CME, as well as options linked to spot Bitcoin ETFs. Nasdaq’s recent approval signifies that index options directly tied to Bitcoin are further integrating into the U.S. equity options market.
This further strengthens the connection between traditional financial markets and crypto assets. The range of regulated Bitcoin derivative instruments available to institutional and retail investors will continue to grow.
- Underlying Index: CME CF Bitcoin Real Time Index
- Settlement Method: Cash Settlement
- Exercise Style: European-style option, exercised at expiration
Still pending final approval from the CFTC
Although the SEC has approved the rule change, one final step remains before the product can officially launch. The relevant contracts still require CFTC approval before trading can commence.
David Barrett, Head of Nasdaq’s U.S. Options Business, said this represents a significant advancement for the U.S. regulated crypto derivatives market. According to him, this decision expands transparent, compliant access to digital asset derivatives.
This development also comes as U.S. regulators reconsider the domesticization of the cryptocurrency market. Earlier this month, SEC Chairman Paul Atkins stated that if regulatory oversight remains absent and pushes innovation overseas, U.S. investors could still suffer losses on offshore platforms. Legislative discussions aimed at establishing clearer cryptocurrency regulations are ongoing, while many of the world’s leading crypto derivatives exchanges remain primarily based outside the United States.